Hackers Steal 7K BTC from Binance Cryptocurrency

A statement released by Binance said, “The hackers used a variety of techniques, including phishing, viruses and other attacks. We are still concluding all possible methods used. There may also be additional affected accounts that have not been identified yet.”

According to the statement, only a single transaction was impacted. “The hackers were able to withdraw 7,000 BTC in this one transaction. It impacted our BTC hot wallet only (which contained about 2% of our total BTC holdings). All of our other wallets are secure and unharmed.” Coindesk reported the total value of stolen Bitcoin was approximately $41 million.

After news of the hack broke, Bitcoin’s price dropped by approximately 4.2% in early Asian trading, Reuters reported.

Binance said that it will be conducting a thorough security review, which will include all parts of its sizable systems. The cryptocurrency exchange estimates this review will take a week, during which time all deposits and withdrawals will need to be suspended. Trading will still be enabled, according to the statement.

“Technical details of the breach still remain obscure, and it would be premature to make any conclusions at this point of time,” said Ilia Kolochenko, founder and CEO of web security company ImmuniWeb.

“Today, all cryptocurrency-related businesses should be well prepared to defend against constant and sophisticated cyber-attacks. In reality, however, virtually all of them underestimate or ignore digital risks and allocate scant resources for cybersecurity. Most have to compete on a very aggressive and turbulent market and thus are reducing their costs by all available means. Software development suffers most tremendously as cheap outsourced code cannot be secure by definition.

“To bring certainty to the cryptocurrency markets clear regulatory standards are required, such as is PCI and PA DSS. Even if they are not a silver bullet, they greatly reduce both the number and average volume of credit cards theft.”